[Click eStock] Neowiz Begins to Reflect Expectations for "Lies of P" DLC

DLC Set for June Release... Anticipation for Renewed Popularity
Brown Dust 2 Makes a Comeback... First Quarter Results Expected to Exceed Forecasts

Market expectations for downloadable content (DLC) in Neowiz's "Lies of P" are rising. Based on this, the company is evaluated to have achieved better-than-expected results in the first quarter of this year and has also secured an additional source of cash generation.

On April 24, Shinhan Investment Corp. maintained its "Buy" investment rating and a target price of 28,000 won for Neowiz, citing these factors. The previous day's closing price was 23,200 won.

For the first quarter of this year, sales are projected to be 92.6 billion won and operating profit 8.8 billion won. These figures represent a decrease of 4.6% and 40.9%, respectively, compared to the same period last year. However, the company is expected to significantly exceed the market consensus for operating profit, which stands at 6.8 billion won.

In detail, follow-up sales of "Lies of P" are estimated at 100,000 to 200,000 units per month, and web board games are also performing solidly. The subculture IP "Brown Dust 2" is making a comeback by addressing user complaints. With the 1.5-year anniversary update reflected, nearly double growth compared to the same period last year is expected. Additional cash-generating sources that are raising the annual earnings floor, such as "Cat and Wasp" and "The Legend of Heroes," are also increasing.

The DLC "Overture" for "Lies of P" is scheduled for release in June. With the end of the contract with Xbox's subscription service Game Pass last month, main game sales are expected to increase. Having reached 7 million cumulative users within just five months of launch, the game has already achieved significant recognition. Immediately after the DLC release, total sales including the main game are expected to exceed 700,000 units.

Kang Seokoh, a researcher at Shinhan Investment Corp., stated, "The recent share price has started to reflect expectations for the release of our own subculture IP comeback and the 'Lies of P' DLC. However, although the company has proven its ability to develop major IPs, it still needs time to expand its lineup and improve its fundamentals."